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How to tailor a loyalty program to be truly Omni Channel to be effective?

winds

24-06-2016

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In the past few years, conventional loyalty programs are lacking gleam to hold on to their loyal customers. Retailers are looking to refocus their loyalty initiatives to compete more effectively. Various avatars of loyalty programs like points programs, discounts, punch cards and rewards are no longer impacting in creating a loyal customer base for retailers.

To win the battle of long-term loyalty while consistently engaging consumers, retail organizations must plan an effective strategy supported with data, analytics, and customer segmentation and targeting.

Have a crystal clear sense of purpose

Every great loyalty program begins with a well-hatched plan. Concrete the objectives of your loyalty program by asking an important question - What do you want your loyalty program to do?

Win new customers

Increase wallet share

Save money

Improve sales profit

Target the right customers, design the right benefits, and analyze the right metrics. More importantly, align your loyalty program with your brand objectives for increased effectiveness.

Adopt KISS strategy

A loyalty program is that it should be a seamless, frictionless experience. Signing up or redeeming awards or checking-points status should be as easy as pie. You need not overwhelm your customer by explaining all the features of your program. A simple program at launch gets you started right away.

Take technological road

Loyalty programs should take technological road to reach success. Work with forward-thinking technology providers to design, execute, and evaluate to augment your loyalty program. The system should have the flexibility to evolve and to use their customer data and insight to evolve in the right ways so that they continue to create new advantages for their customers. Creating databases to store customer data is a must. . It is essential that the system you choose has the features you need, not only for now but for the future development of the loyalty program.

Create experiences for the customer

The loyalty program must target crafting experiences that pave the way for the shopping, during the visit and extend far beyond the point that the customer leaves the retailer. Connecting them through handheld devices via omnichannel strategies will help the programs to become a part of customer’s everyday life.

Get Personal

Retailers must focus on building and fostering member relationships to achieve success. Provide an exclusive program that rewards via a more customizable experience based on individual customers’ preferences. For example focus on reaching customers during times or events that pertain exclusively to that individual. This form of advertising makes a customer feel special while subconsciously building loyalty to the brand.

See where you stand

Every loyalty program must be analyzed conceptually and empirically from its loyalty metrics and key-performance indicators like

volume indicators – which include total number of participant, sales, purchases percentage of sales made by participating customers

purchase frequency of participating loyal customers

average purchase sum of loyal customer base

customer defection rate

customer lifetime value

Using marketing managers and researchers insights, they offer managerial guidelines for delivering loyalty programs in ways that can enhance performance.

All said and done, no loyalty program is a 'quick fix' for an ailing retail business. It takes patience and perseverance along with a great program in place to build loyalty because loyalty is based on trust- and relevance-based relationships with best customers.